The IT Nerd

The much maligned Microsoft Zune is apparently dead. Here’s what they plan to do instead:

Microsoft will concentrate on putting Zune software onto mobile phones, such as those running its Windows operating system, said the person, who declined to be identified because the decision hasn’t been announced. Zune software lets customers buy songs and movies, as well as pay a monthly fee to stream unlimited music.

Microsoft denies this of course. But the death of the Zune is long overdue. I only know one person who bought one. And I’m guessing that for every person who bought a Zune, a thousand or more bought iPods. That’s not a great business model if you’re Microsoft. It will be interesting to see if what they come up with next. Hopefully it’s more successful than the Zune.

I guess that Microsoft is sick of having the iPod own the digital music player market. So in response, they’ve announced the Zune HD. News.com has the details:

The Zune HD, which will be available in the U.S. only starting this fall, features an HD Radio tuner as well as an organic light-emitting diode (OLED) touch screen, Microsoft said. It is based on Windows CE and will use a version of Internet Explorer customized for its touch screen, Microsoft said.

You can also look at the Microsoft press release which mentions integration with Xbox Live as well as easy hook up to a TV using a HDMI cable.

Microsoft really thinks that this can give the iPod touch a run for it’s money. But I disagree. I’ll give Microsoft points for using an OLED screen, but my praise ends there. Most of the other details are kind of sketchy (capacity being the most glaring), so you have to wonder how Microsoft will fill in those blanks. And what’s the deal with the radio? I don’t need it, and I doubt that anybody else does either.

In any case, welcome to the party MS. Nice to see you are late as usual.

I’m guessing that the people in Microsoft’s Zune group are mass e-mailing their CV’s around at the moment. Because accoring to Microsoft’s latest 10-Q filing “Zune platform revenue decreased $100 million or 54% reflecting a decrease in device sales.” This is happening as iPod sales continue to increase… despite the fact that everyone plus dog has one already. The numbers given by Apple in their quarterly statements indicate that they sold over 22 million units last quarter. That’s just 3% higher when compared to the same period last year, but any increase is better than the free fall that the folks in Redmond are dealing with.

Perhaps Microsoft should come to the conclusion that the Zune isn’t going to beat the iPod and just cut their losses now?